Market Forecast

  • 21 Sep
    Heavy Machinery & Auto Stocks – Is Now The Time To Buy?

    Heavy Machinery & Auto Stocks – Is Now The Time To Buy?

    • Heavy equipment seems to be in the midsts of a supply glut where the risks outweigh the rewards.
    • Emerging markets are the key for car manufacturers, and positioning for growth there is essential.
    • Car manufacturers offer the possibility for long term outperformance by proper due diligence and geographic growth analysis.

    Introduction

    Heavy equipment, machinery and automotive manufacturing are important parts of the economy, but the sector is a cyclical one. In periods of economic growth, the majority of people buy new cars, and new infrastructure and homes are built, which increases the demand for machinery. However, this demand only lasts up to a point after which people have already purchased their new car—and aren’t likely to replace it for 7 years—and there is an abundance of machinery available as machinery is typically made to last for more than 20 years. More →

  • 01 Sep
    Want To Make Money On Your Morning Cup of Coffee?

    Want To Make Money On Your Morning Cup of Coffee?

    • Demand for coffee is always increasing while supply is unstable and facing structural climate issues.
    • Investing opportunities include coffeehouse chains and direct investments in coffee through ETNs.
    • As you have to give your kid $3.65 for a Grande Caffé Latte at Starbucks, you might as well make some money on it.

    Introduction

    Most of us drink coffee on a daily basis, but how often do you think about investing in those same cups of coffee? This article is going to analyze global coffee trends, investing opportunities and risks related to coffee.

    Maybe it won’t be just your daily indulgence anymore, but something that will enable you to enjoy more of it in an early retirement. Legendary investor Peter Lynch always said to invest in what you know, and coffee is something a lot of us know. More →

  • 30 Aug
    Is There A Second Chance For 3D Printing?

    Is There A Second Chance For 3D Printing?

    • 3D printing stocks are back to the pre-3D printing stock boom.
    • The future of 3D printing looks too good to be true.
    • Microsoft is an example of how it is also a good idea to wait and invest only when the trend is really confirmed.

    Introduction

    3D printing isn’t currently in fashion in the investing world, but it serves as a perfect example of how investors’ excitement about uncertain future prospects can fuel an incredible stock boom that quickly fades as fundamentals don’t support the excitement. More →

  • 25 Aug
    The Future Will Blow Your Mind. How Can You Take Advantage Of It?

    The Future Will Blow Your Mind. How Can You Take Advantage Of It?

    • Global GDP has quadrupled in the last 35 years and will probably do so again in the next 35 years.
    • By 2050 it’s expected there will be 10 billion people on earth and most of them will be living a western lifestyle.
    • While the forecasts are pretty certain, the issue is that the way towards those forecasts will not be linear. Investors should be careful not to get excited and jump into bubbles.

    Introduction 

    Investing is both complicated and simple at the same time. Today we are going to show the simple side of investing by analyzing a few factors that are almost certain and that will have a huge influence on your investing returns. By analyzing a few global demographic and economic trends we can see where the world will be in the future and connect that with our investments pictures, a scenario that is actually mind-blowing. Keep reading… More →

  • 16 Aug
    Emerging Markets Are Hot – Here Is Where You Should Put Your Money

    Emerging Markets Are Hot – Here Is Where You Should Put Your Money

    • Emerging markets are up 10% since our last article on the subject, but the FED’s rate action might quickly erase the gains.
    • Valuations are starting to diverge, but don’t fight the trend.
    • Keep an eye on China as it is relatively undervalued and still boosts economic growth of 6.7%.

    Introduction

    In May we discussed how emerging markets have been rediscovered but are still undervalued. Since then, the emerging markets ETF is up 10%. More →

  • 09 Aug
    Making The Case: Why Investing In Healthcare Is A Good Move Now

    Making The Case: Why Investing In Healthcare Is A Good Move Now

    • Healthcare spending is expected to grow at 5.8% per annum, or around 4% in recession time.
    • The healthcare index is as equally valued as the S&P 500; global healthcare is cheaper.
    • Government involvement and budget limits are the risks, but the risk reward ratio is one of the best in the market.

    Introduction

    Yesterday we talked about how the market and the economy are sending mixed signals and look fragile which results in increased risks for low expected returns. One way to be defensive but still grasp the upside is to invest in healthcare stocks. In this article we are going to elaborate on the rationale for investing in healthcare and discuss diversified investing possibilities and risks. More →

  • 08 Aug
    Signs of Fragility in the Economy Point to an Impending Bear Market. What To Do Now To Protect Yourself.

    Signs of Fragility in the Economy Point to an Impending Bear Market. What To Do Now To Protect Yourself.

    • The last jobs report was good news but it also indicates higher costs and full employment.
    • An “easy to hire, easy to fire” mentality is in the air.
    • Healthcare, cash or short term trades should be the best options in this situation.

    Introduction

    Last week the Nasdaq and S&P 500 reached yet another record high. Aggressive central bank stimulation pushes investors to disregard risks and look for any kind of yield or growth. Not looking at risk is the worst thing an investor can do, but they also shouldn’t fight the trend. More →

  • 02 Aug
    Euphoria & Denial Point to the Last Days of the Bull Market

    Euphoria & Denial Point to the Last Days of the Bull Market

    • Risks are cumulating and getting bigger.
    • U.S. GDP growth is slower than expected, earnings and oil prices continue to decline.
    • Japan is unable to grow while BREXIT risks are still unfolding.

    Introduction

    It is difficult to find good news lately. The last really good news was the June jobs report when 287,000 jobs were added. Since then, most of the news seems dismal, however, it has yet to have a negative impact on financial markets. It’s as though investors are just hoping for something good to happen in the future. As hopes are an immaterial human feeling, they should not be the base for investment decisions. More →

  • 27 Jul
    Will A Bet On Commodities Pay Now?

    Will A Bet On Commodities Pay Now?

    • Iron ore prices are falling as supply continues to grow, while copper and zinc prices show signs of supply gaps forming.
    • Low exploration and discoveries indicate that metals will be winners again in the future.
    • The possibility of future inflation increases the appeal of commodities.

    Introduction

    Diversification is the ultimate protection against various economic factors, in recessions you might want to hold gold or treasuries, in inflationary times you want to be long stocks and commodities. Therefore it is very important to always know what is happening in each potential diversification sector. More →

  • 22 Jul
    Have Recent Market & Currency Gains In Brazil Just Increased The Risks?

    Have Recent Market & Currency Gains In Brazil Just Increased The Risks?

    • Brazil’s economy contraction is slowing and the trend is turning positive.
    • The political situation is currently stable but trouble is always around the corner.
    • Fundamentals show potential but also risks as the price to book value is relatively high at 1.4.

    Introduction

    In April we wrote about Brazil and described it as a good risk reward opportunity as all the bad things had already happened. Brazil’s president Dilma Rousseff had just been impeached, the economy had declined by more than 5% and Brazil’s currency was at historical lows against the dollar. More →

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